Case Studies
FTSE 100 Fund Manager
Client Issues
The client had radically changed its business model and risk profile. There was a desire to drive its own insurance needs and dictate terms to the market. The client required a broker who could demonstrate a comprehensive understanding of the ‘new’ business. The client was also concerned with quality of service and cost.
What We Did
Defined with client senior management team their needs and expectations. Designed, drafted, managed, resourced and successfully delivered a broker performance and procurement project. Drafted and issued the Request to Tender (RTT), then collated and analysed the respective responses. Interviewed brokers and their referees. Provided both quantitative and narrative reports to senior management to support the selection and appointment process.
Benefits Delivered
Appointment of broker that clearly demonstrated a comprehensive understanding of the client's business and risk profile. Greater control over the design of the insurance and risk financing programme. Greater influence on the insurance market. Independent and objective review of potential brokers – fully auditable. Quantitative and narrative report that supports the discharge of stewardship and governance responsibilities. Quality of service. Timely and efficient delivery of process. Adequate resourcing and project management to permit senior management to focus on their day to day responsibilities.
Cost savings of £750,000 over 3 years.
International Financial Services Conglomerate
(ASSET MANAGEMENT, FUND MANAGEMENT, BANKING AND INSURANCE)
Client Issues
It was over 6 years since the last broker review and the incumbent had been in situ for over 20 years. There was a desire to review the market. A benchmark of the incumbent broker’s services against client’s expectations was needed. There were resource issues and the client’s risk profile had changed following an acquisition.
What We Did
Designed, resourced, managed and successfully delivered idRisk Broker Performance Assessment process. Drafted tender, agreed assessment criteria with client senior management and managed the process over a tight timescale on behalf of the client. Interviewed brokers and their referees. Provided both quantitative and narrative reports to senior management to support the selection and appointment process.
Benefits Delivered
Successfully appointed two brokers to meet specific service needs of client. The brokers are now acting in a consulting and strategic advisor capacity as well as putting in place an insurance programme. There is now a strong broker relationship and an innovative programme has been designed and structured with streamlined co-ordination and administration of programme. There is now adequate resourcing and project management to permit senior management to focus on their day to day responsibilities.
Cost savings of £540,000 over 3 years.
Public Sector Authority
Client Issues
This authority had a significant property portfolio and the insurance administration was considerable. It sought confirmation that it was getting a good quality and cost-effective service from the broker. The broker had been in place for over 20 years and was earning commission on the insurance placements.
What We Did
Our review focused on the Value For Money (VFM) that the authority was getting and we quickly identified a number of areas where the broker could improve service. These included:
* Administration of the property schedule
* Claims handling
* Premium allocation across the portfolio
* Proactive advice on EU tender requirements.
The broker income basis was reviewed and changed to a more appropriate fee basis which provided the transparency that the authority required.
Benefits Delivered
In this case, the existing broker was retained and the refreshed relationship was much stronger for both parties going forward. A new Service Agreement was also developed to ensure that the service continued at a high level.
The cost savings amounted to £196,000 over 3 years.
International Oil Company
Client Issues
This review was related to the Broker Service but also touched on the existing programme that the client had in place. The client felt that it was spending a lot of money on its insurance and was not convinced that the programme was structured in the best way. In addition there were two separate brokers placing various parts of the programme which added to costs.
What We Did
idRisk was able to co-ordinate a risk review of the client’s main locations and then relate these back to the existing programme. This showed that the client’s suspicions were well founded and that in most loss scenarios the programme would not respond properly. In addition, there was a structural flaw in the programme which would have resulted in Average being imposed to a significant degree.
Benefits Delivered
The programme is now being restructured and the two brokers are being encouraged to work more closely together, both from a technical and market negotiating point of view.
